1. Advertising and Public Relations

2. Chapter Objectives

Describe integrated marketing communication (IMC) and classify IMC media, tools and technologies.

Outline the steps in developing IMC, including identifying a target audience and determining the response sought.

Describe the communication process: selecting a message, choosing the media, selecting a message source and collecting feedback.

Define the ways of setting an IMC budget: affordable, percentage-of-sales, competitive parity and objective-and-task methods.

3. Contd

Explain the nature of each IMC tool advertising, public relations, direct and digital marketing, sales promotion and personal selling- and the factors involved when setting the IMC program: type of product and market, push versus pull strategies, buyer-readiness states and product life-cycle stage.

Describe the nature of media advertising, including the main decisions involved: advertising budgeting, setting strategy, creative execution, media selection and evaluation in terms of communication and sales outcomes.

4. Contd

Define public relations and outline the more common forms of this IMC tool.

Explain the need for socially responsible marketing communication and describe how this is achieved.

5. Marketing Promotion

Communicationbymarketers thatinforms, reminds, or persuadespotentialbuyersoftheproduct, sothattheycanbepositively influencedtowardstheproduct.

6. Integrated Marketing Communication (IMC)

IMC is the coordination of a firms promotional efforts using major communication elements such as:

• Advertising .

• Sales promotion .

• Public relations .

• Direct and digital marketing .

• Personal selling .

7. Contd

A firms IMC program will consist of a specificblend ofthecommunication elements thatwillmosteffectively meettheir objectives toinform ,persuade ,andremind consumers of thefirms product; as wellastoreinforcetheconsumers attitudesandperceptions.

8. Contd

Advertising

• Impersonal, one-way mass communication paid for by the firm to raise awareness of the firm or its product

Sales Promotion

• Specific additional marketing activities to generate a significantshort-termincrease in sales volume

Public Relations

• Additionalpublicityfrom credible sources to help create a positive image within the general community

Direct and Digital marketing

• Inexpensive means of targeting large numbers of consumers

Personal Selling

• Direct approach aimed at convincing consumers to buy the particular product

9. Marketing Communication System 10. DevelopingIMC

Communication has nine elements - Fig 12.2.

• There are:

• Two major parties; thesenderand thereceiverof the information.

• Two major communications tools; themessageand themediaused.

• Four major communication functions;encoding ,decoding ,responseandfeedback .

• The final element isnoise(message interference).

11. Elements in the Communication Process

Sender . The party sending the message.

Encoding . The process of putting thoughts and ideas into symbolic form ready for transmission.

Message . The set of symbols that are sent to the intended target-the actual advertisement.

Media . The communication channel through which the message moves from sender to receiver.

Decoding . The process by which the receiver assigns meaning to the symbols encoded by the sender - consumer watches the advertisement andinterpretsthe words and illustrations it contains.

12. Contd

Receiver . The party that receives the message - the consumer who sees the advertisement.

Response . Reactions of the receiver after being exposed to the message - many possible responses.

Feedback . That part of the receiver's response which is communicated back to the sender-research can indicate whether or not the advertisement was liked.

Noise . The unplanned distortion of the message during the communication process that results in the receiver getting a message that is different to the one the sender had intended.

13. Elements in the Communication Process 14. Steps in Developing IMC 15. Decisions in developing IMC

IdentifytheTargetAudience

DetermineCommunication Objectives

DesignaMessage

SelectaMedia

SelectaMessage Source

CollectFeedback

16. 1. Identifying the Audience

• Must start with a specific audience in mind

• The audience may be potential buyers or current users; those who make the buying decision; or those who influence the decision

• The audience may be individuals; groups; special publics; or the general public

17. 2. Determining Objectives

Whatresponseisthemarketertryingto achievethroughthemessage?

Marketer needs to know what the target audiences

state of readiness is, in regard to the product.

• Awareness -may not even recognise product

• Knowledge -aware, but knows very little

• Liking -knows enough to like or dislike

• Preference -likes product, but prefers others

• Conviction -prefers, but not committed to buy

• Purchase -needs more incentive to buy

18. 3. Designing the Message

• RationalAppeal-highlightthebenefits

• EmotionalAppeal-positive / negative

• MoralAppeal-highlightwhatis right

• MessageStructure-whatapproach?

• • • • - howtopresentthe argument

• MessageFormat-howtoconvey the

• message.

19. Contd

Ideallythefirmsmessageshould :

• GetA ttention

• HoldI nterest

• ArouseD esire

• ObtainA ction

• ( A framework known as theAIDAmodel)

20. Designing Message-Content

Rational Appeals

• These relate to the audiences self interest, and indicate tothe consumer that the product will produce desired benefits.

Emotional Appeals

• These attempt to generate positive or negative emotions in consumers that can motivate them to make a purchase.

Moral Appeals

• These are directed to the audiences sense of what is socially and morally right.

21. Message-Structure/ Format

Message Structure-three structure issues:

• Whether to draw a conclusion, or leave it to the audience

• Whether to present a one-sided or two-sided argument

• Whether to present the strongest argument first, or last

Message Format

• The communicator needs a strong format for the message.

• In print advertisements, the communicator decides on the headline; copy; illustration; and colour.

• For radio, chooses words; sounds; and voices.

• For TV, all elements, plus body language, are considered.

22.

Personal Communication channels

• Channels through which two or more people communicate directly with each other, including face-to-face; person-to-audience; telephone; or through the mail.

• Extra important for high risk purchases

Non-personal communication channels

• Channels that carry messages without personal contact or direct feedback, including media; events; and particular environments.

4. SelectingMedia 23. 5. Selecting Message Source

The impact of the message on the audience is also affected by how the audience views the sender of the message.

Messages delivered by a highly credible source are more persuasive, e.g. entertainers; athletes; industry professionals.

Sources are made credible by those who are well liked, trusted; or viewed as an expert.

24. 6. Collecting Feedback

After sending the message, the communicator must assess what effect the message had on the target audience

This might involve asking target audience if it:

• remembers the message; how many times it was seen; what specific points are recalled; how they felt about the message; past and present attitude to the product or company.

25. Setting the IMC Budget

Common methods used to set total IMC budget:

• Affordable method

• • only what the firm can afford to spend .

• Percentage-of-sales method (cause or result?)

• • as a % of current or projected sales .

• Competitive-parity method

• • to match what competitors spend .

• Objective-and-task method

• • estimate the cost of the tasks to meet set objectives .

• • the most logical approach, but the most difficult to use .

• Each method has advantages/ disadvantages

26. Setting the IMC Mix

The marketer needs to divide the total IMC budget among the major communication categories, using specific media, tools, and technologies to achieve marketing objectives:

• Media advertising

• Public relations

• Sales promotion

• Direct and digital marketing

• Personal selling

• Different companies within the same industry can

• differ greatly in how they design their IMC mix.

27. Considerations in Developing IMC

Companies need to consider many factors when developing their IMC program, including

• type of product and market;

• push versus pull strategy;

• buyer-readiness state;

• product life-cycle stage.

28. Type of Product/ Market

Businessvs.Consumerproduct

Costoftheproduct

Levelofriskinvolved

Major differences in B2C and B2B markets

Consumer(B2C)

• more emphasis on advertising and sales promo

• much less on personal selling

Industrial(B2B)

• greater emphasis on personal selling

29. Push/ PullStrategies

PUSH strategy involves pushing the product through marketing channels (intermediaries), whoarethenexpectedtogenerateinterestfromthefinal consumers/ end-userstoencouragepurchaseoftheproduct

PULL strategy aims the marketing activities directly at final consumers who are then expected to demand that intermediaries make the product available to enable consumers to buy.

30. Buyer Readiness

Thestateofreadinesshelpsdeterminewhich communicationapproachwillbemosteffective

• AwarenessandKnowledge stages

• • UseofAdvertisingandPR

• Liking; Preference; andConviction stages

• • UseofPersonalsellingandAdvertising

• ReadytoPurchasestage

• • UseofDirectmarketing; SalescallsandSalespromotion

31. Which stage in the PLC

Introduction; Growth; Maturity; Decline

Each stage of the Cycle will display different characteristics and, therefore, each may require a different approach

Some IMC elements are more / less suited to particular PLC stages

32. Main Decisions in Advertising

• Advertising Objectives

• specific tasks for specific audience

Budget Decisions

• will depend on item/ market/ competitors

Message Decisions

• what needs to be communicated, and how

• Media Decisions

• Media type/ message frequency

33. Main DecisionsFig 12.7 34. Setting Advertising Objectives

Theobjectiveis a specific communication task to be accomplished with a specific target audience, during a specific period of time.

Advertising objectives can be classified by purpose, whether their aim is toinform; persuade;orremind.Will resultin:

• Informative advertising.

• Persuasive advertising.

• Comparison advertising.

• Reminder advertising.

35. Possible objectivesFig 12.8 36. Setting Advertising Budget

After determining its advertising objectives, the company can set itsadvertising budgetfor each product .

The role of advertising is to positively affect the level of demand for the product .

A company wants to spendonlythat amount of money needed to achieve the sales goal .

37. Contd

Specific factors to consider include :

• Stage in the product life cycle: new products need larger budgets.

• Market share: high market-share brands usually need more advertising spending as a percentage of sales.

• Competition and clutter: in a market with many competitors, more advertising is necessary.

• Advertising frequency: many repetitions requires more budget.

• Product differentiation: a brand that closely resembles other brands will require more advertising to help differentiate it from the competition.

38. DevelopingAdvertising Strategy

A large advertising budget does not guarantee a successful advertising campaign. Two advertisers can spend the same amount on advertising, yet produce very different results.

The first step in creating effective advertising messages is to decide what general message will be communicated to consumers.

• • • thisisthemessagestrategy

39. Message Execution

Slice-of-life : shows the product being used in a typical situation.

Lifestyle : shows how product fits a particular lifestyle.

Fantasy : creates a fantasy (suggested situation) around the product or its use.

Mood or image : builds a mood or image around the product, such as beauty; love; or serenity.

Musical : shows people or cartoon characters singing a song about the product.

40. Contd

Personality symbol : creates a well known character that represents the product.

Technical expertise : shows the companys expertise in making the product.

Scientific evidence : presents survey or scientific evidence to indicate that the brand is better, or better liked, than other brands.

Testimonial evidence : features a highly believable or likeable source endorsing the product.

41. Selecting Advertising Media

The advertiser chooses advertising media to carry the message.

The major steps in media selection are:

• Deciding on reach, frequency and impact.

• Selecting major media types.

• Deciding on media timing.

• Selecting specific media vehicles.

42. Profiles of Main Media Types 43. Advertising Evaluation

Measuring communication effect(copy testing).

Three major methods of advertising pre-testing

• Direct rating ads rated by panel of consumers

• Portfolio testslevel of consumer recall

• Laboratory testsphysiological testing (attentiongetting)

Two popular methods of advertising post-testing

• Recall tests how well the ad was noticed

• Recognition tests how ad compares to competitors

44. Measuring Sales Effect

The effect of advertising on sales is often much harder to measure than the communication effect, because sales are influenced by many other factors.

What volume of sales might be generated by an ad that increases brand awareness by 20%, and brand preference by 10%?

One way to measure the effect advertising has on sales is to compare past sales with past advertising expenditures. Another is to conduct experiments.

However, measuring the results of advertising expenditure is difficult and inexact.

45. International Advertising Decisions

The major decision is the extent to which global advertising should be adapted to the unique characteristics of markets in various countries.

Standardisation delivers benefits, such as lower costs and greater coordination of global efforts, but ignores important elements like cultural differences.

Most companies try to think globally and act locally.

Costs and legislative requirements in different countries will always need to be considered.

46. Public Relations Decisions

Another major mass-communication tool is public relations, which aims at building good relations with the companys various publics, using different tools:

• Press relations

• Product publicity

• Public affairs

• Lobbying

• Investor relations

• Development

• The objective is to build a good corporate image

47. Major Public Relations Tools

News

Public speeches

Special events public openings

Written materials

Audiovisual materials

Corporate identity materials

Community service activities

48. Socially Responsible Marketing Communication

Advertising

• Companies must avoidfalse/ deceptive advertising.

• Advertisers must not create advertisements that have the capacity to deceive the audience.

• Sellers must avoidbait-and-switch advertisingthat attracts buyers under false pretences.

Personal selling

• Companies must ensure their salespeople follow the rule of fair competition when selling products directly to the public.

49. Contd

Direct and Digital Marketing:

• Direct and digital marketers and their customers usually enjoy mutually rewarding relationships.

• However,unfairness, deception and fraudfrom aggressive markets can sometimes occur.

• Direct marketing can also have a major impact on individual privacy .